Animoca Brands Plans to Launch $2 Billion Metaverse Fund: Report

Hong Kong-based gaming software company Animoca Brands is planning to launch a $2 billion fund dubbed “Animoca Capital” to support metaverse businesses, according to a report by Nikkei Asia on Wednesday, citing an interview with the company’s co-founder and Executive Chairman Yat Siu. 

Siu confirmed that the fund’s first investment is expected to happen in 2023.

Animoca Brands to Launch $2B Metaverse Fund

“We are thinking about a fund [that is now] forming. The fund’s target is $1 billion to $2 billion,” Siu said. He however noted that the money has not been raised.

The metaverse is a virtual reality space referred to as the next-generation internet. Reports show that the global metaverse market size is expected to reach $872 billion in six years.

Siu noted that the fund will focus on “NFT metaverse” and “open metaverse” businesses with no geographical restrictions for investment targets.

Worth mentioning is that Animoca is not a newcomer to the Web 3 space. Since its launch in 2014, the gaming company has made about 380 investments in Web 3 businesses, including notable NFT platforms OpenSea and Dapper Labs. 

Animoca’s latest plan comes at a time when the crypto sector is facing major turmoil with several industry firms including FTX and BlockFi filing for bankruptcy.

Siu noted that due to extreme market conditions, the fundraising environment has been more challenging than it used to be. 

“[But] on the other hand, I think it’s not as competitive as before. … In a bear market, what often happens is concentration goes to market leaders,” he added.

Animoca to Support Binance’s Industry Recovery Fund

Meanwhile, Animoca’s founder revealed that his company would be supporting the Binance industry recovery fund, which is meant to save crypto projects that are facing a liquidity crisis in the wake of the FTX fiasco.

According to Siu, Animoca will contribute $10 million to the fund and could increase its contribution depending on the situation.